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Economic Integration, Inequality and Growth: Latin America vs. the European economies in transition

  • Giovanni Andrea Cornia

This paper presents a simple theoretical framework to explain variations in income inequality over time and between countries. It also analyses the factors responsible for the widespread rise in inequality during the neo-liberal reforms of 1980-2000 in the fields of trade, foreign direct investment (FDI) and capital flows, and the rise in migration. Finally, it compares the decline in inequality observed in most of Latin America over 2000-2008 with the steady increase of inequality in many European transition economies during this period despite their return to robust growth. The paper argues that such divergence is explained by differences in policies.

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File URL: http://www.un.org/en/development/desa/papers/2011
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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 101.

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Length: 40 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:une:wpaper:101
Contact details of provider: Web page: http://www.un.org/en/development/desa/working-papers.html
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